The litigation process can be prolonged and drawn out, delaying judgment and settlement for months and even years. Between legal fees, unavoidable daily expenses and the potential lack of income, a lawsuit can become expensive and burdensome. Many insurance companies use this deficiency to their advantage by waiting out the financial means of the plaintiff. Plaintiffs who seek out a pre-settlement loan, otherwise known as a lawsuit loan, can utilize this channel to alleviate the pressure of life expenditures and fully commit to the achievement of a fair settlement. Applying for a lawsuit loan can give you the time you need to seek a fair settlement.
A conscientious plaintiff will always ask: What are the fees associated with a lawsuit loan? When speaking with a reputable, fair lawsuit loan company you should discuss the fees with them upon consultation of applying for the loan. When examining a lawsuit settlement funding agreement, plaintiffs should look for three potential fees:
1. Processing fees: Processing fees are those associated with your initial application and consultation. Non-refundable, up-front costs indicate who the lawsuit lender is most concerned about in a loan agreement. Is your lawsuit funding provider looking after you and becoming invested in your case and financial situation?
2. Monthly fees: Compounded, monthly fees will exponentially add up, virtually guaranteeing that a large percentage of the final settlement goes to the lender. Is your lawsuit loan provider charging a monthly fee and what is the interest rate?
3. Pre-payment fees: Most recognizably linked to mortgages, pre-payment fees have found their way into the lawsuit loan industry. These fees are incurred when a plaintiff pays the amount of their loan back early and deprives a lender of future interest payments on their final settlement amount. Is your lawsuit loan provider concerned with collecting their loan amount plus interest or with working with you to achieve a fair settlement?
Asking yourself and your loan provider questions about fees is not taboo — it’s necessary. A trustworthy lawsuit loan provider will talk openly with their client about the repayment amount and any fees. Prior to accepting a lawsuit loan agreement, a plaintiff should be confident that the structure and repayment of the loan has been thoroughly explained. These are the features of an invested firm that works to build a foundation of trust with their clients and helps them fight their case.
About the Author: Steven Medvin is the Executive Director of SMP Advance Funding, LLC, which provides lawsuit funding to individuals who need a lawsuit loan for pending lawsuits. For more information please visit: https://www.smpadvance.com.
